Chatper 7 Custom 20 marks impugned Derived from entry of 83 of union list of seventh schedule to the constitution of india power of make laws vests with central government Custom Act, 1962 Custom Tariff Act, 1975 Schedule I Import Tariff- 98 chapters grouped under 21 sections Schedule II Export Tariff Rules- Section 156 empower to the central govt Regulation - Section 157 of the custom act, 1962 empower the CBEC to make regulations consistent with the act and  the rules notification- Article 13(3)(a) of the Constitution- central government Adjudicating Authority 2(1) pass any order or decision- issues show cause notices in case of short levy/ non-levy of duty or non payment Don’t confuse with Appellate Authority- Commissioner ( Appeals ) / Appellate Tribunal Administrative Authority - CBEC Coastal Goods 2(7) imported from london port to be cleared kolkata port and in between IT TOUCHES THE BOMBAY PORT/ CLEARED FROM CUSTOMS AREA AT BOMBAY PORT Goods Refer Imported goods 2(25) 2+2+5=9 does not include which have been cleared for home consumption goods warehoused u/s 59 imported goods Board meanns the Central Board of Excise and Customs constituted under the Central Board of Revenue Act, 1963 Fund means consumer welfare fund established under section 12C of the Central Excise and Salt Act,1944 Constitution definition of india refer Date of determination of the rate of duty 12 Charging section - duty and levy of custom duty. Taxable event import- import of goods will commence when they cross and completed when it becomes part of the mass of goods. ccc bp TE taxable event is reached when goods reach the customs barrier and the bill of entry for home consumption is filed Garden silk Mills Ltd. v/s UOI (1999) GSM  Export-  commences when the shipping bill is filled Taxable event is completed when the goods cross   Date for determination of rate of duty and tariff valuation 46 goods entered for home cosnumtion - 15(1)a- date of presentation of bill of entry or entry inwards. four laters in home and after add 2 in each case 68 goods cleared from warehouse.- ex bond bill of entry for home consumption under that section for any other gooods - on the date of payment of duty 50 Goods entered for export  - proper officer make the order for permitting clearnce and loading for exportation u/s 51   Refer 7.8 Types of appraisements- assess of value, quality etc- two types 1 First appraisement system or first check procedure - documents are insufficient or goods are subjected to chemical or other test. Control through physical means 2 Second appraisements- adequate ok, control through documents Assessment contrary to claim of importer/exporter to be completed within 15 days. Provisional assessment sec 18 1 documents 2 chemical or other test 3 further enquiry necessary 13% p.a from the first day of the month in which the duty is provisionally assessed till the date of payment thereof. if not refunded within three month from the date of assessment of duty finally, there shall be paid an interest 6% till the date of refund of such amount. Section 19 determination of duty where imported goods consist of articles liable to different rates of duty. Section 13 ingredients pilfered goods (23 covers total loss of package) 1 after the unloading (45(3) covers after unloading) 2 before proper officer home consumption 47 or deposit in warehouse 60 (under the custody of custodian beyond the period presecribed u/s 48(30 days ) in this case custodian will be liable) The rate will be applicable the one that is prevailing on the date of delivery of the import manifest/report Sec 22 abatement of duty on damaged or deteriorated goods 1 Before unloaded in india or while being unloaded 2 if unloaded then before they were examined or tested u/s 17 However, the damage must have been on account of accident, which was not due to any wilful act, negligence or default of the importer, his employee or agent SECTION 23. Remission of duty on lost, destroyed or abandoned goods. – (1) satisfaction of the [Assistant Commissioner of Customs or Deputy Commissioner of Customs] that any imported goods have been lost or destroyed, at any time before clearance for home consumption, the shall remit the duty on such goods. no remission on theft - Himalaya Granites Ltd. Vs. ACCEx. 2007 SECTION 24. Power to make rules for denaturing or mutilation of goods. – The Central Government may make rules for permitting at the request of the owner the denaturing or mutilation of imported goods which are ordinarily used for more than one purpose so as to render them unfit for one or more of such purposes; and where any goods are so denatured or mutilated they shall be chargeable to duty at such rate as would be applicable if the goods had been imported in the denatured or mutilated form. UOI v. Madanlal Steel Industries Ltd. [2001] - no mutilation and release in case of wilfully misdeclared goods. SECTION 20. Re-importation of goods. — Refer 7.15 Goods drawback re-imported within 3 years without being re-manufactured Goods exported for repairs re-imported without being re-manufactured.- Fair cost of repairs carried out including cost of material whether acutal incurred or not and isurance and frieght charges both way. Goods manufactured in India and re-imported into India - for repairs or reconditioning within 3 years from the date of such exportation nil, if such goods are exported within 6 months for reprocessing; or refining; or re-making' or other similar process within 1 year from the date of exportation Section 8  Power to approve landing places and specify limits of customs area Commissioner of customs Section 9  Power to declare places to be warehousing stations CBEC Section 10  Appointment of boarding station Commissioner of customs To appoint public warehouses at any warehousing station Assistant/Deputy Commissioner

Chapter - IV      Prohibitions on importation and exportation of goods

  Section 11  Power to prohibit importation or exportation of goods - the purpose of which have been mentioned as follows -  1 security smuggling establishment of any industry deceptive practices foreign exchange shortage of goods agricultural standards morality domestic prod life of health national treasures conservation protection of ptc prevention of contravention implementation of any treaty injury to economy compliance of law foreign trade relations obligation un others Chapter 8 Preferential rate Section - 04 Levy of duty where standard rate and preferential rate are specified custom tariff act Custom act Section 25  Power to grant exemption from duty 1 at the time of importation 2 preferential area notified by cg 3 in accordance with rules Section 3(1) of custome tariff act levies additional duty equal to excise 3(2) mode of calculation assessable value u/s 14(1) or tariff value (2) Add- Basic duty of customs u/s 12 value for the purpose of levy of additional duty of customs mode of calculation in case of RSP based excise duty RSP less percentage of abatement as is notified by CG u/s 4A this is subject to the amendment which need to be considered If goods liable to excise duty based on tariff value then tariff value only finance no. 2 act , 2009 Basic custom duty is leviable on assessable value Hyderabad Industries Ltd. V. UOI (1999) while production or manufacture is necessary for levy of additional duty , actual production/ manufacture thereof in india is not required. if no pm involved in article and excise cannot be imposed in that case no additional duty Protective duty TA 6 and 7 by CG on Recommendation of the tariff commission Safeguard duty qty import u/s 8b read with the customs tariff (Identification and Assessment of Safeguard Duty) Rules, 1997 Provisional - 200 days other 4 years or 10 years 9 Countervailing duty on subsidized articles - anti subsidy duty CG, on any imported article when any country gives any subsidy, directly or indirectly, upon the manufacture or production, transportation or exportation of such article into india. required condition relates to export performance relates to the use of domestic goods over imported goods in the export article. conferred on a limited number of persons engaged in mp or exporting the article. Exempt research activities person engaged in the mpe assistance to disadvantaged regions within the territory promote adaptation of existing facilities to new environmental requirements. Retrospective levy ninety days from the date of such notification of provisional duty. Duration - 5 years, 10 years 9A Anti Dumping Duty Duty drawback - in case the goods made out of the material subject to antidumping duty. 9AA Refund in case excess of the actual margin 9B Circumsatnces where anti subsidy or anti dumping duty cannot be levied both shall not be levied together meant for consumption in the country of origin or exportation. specified countries satisfactory voluntary undertaking from the govt of the exporting country satisfactory voluntary undertaking from the exporter Remedy available to aggrieved importer 9c appeal to CESTAT constituted u/s 129 within 90 days with fees of Rs. 15000 tribunal for grant of stay or rectification of mistake or for restoration of appeal - Rs. 500 apparatus the technical equipment or machinery needed for a particular activity or purpose Chapter 3 Valuation of goods section 14 (1) read with the Customs Valuation ( Determination of Value of Imported Goods /Export goods ) Rules, 2007 (for short ''import valuation rules'') Delivery and Discharge are not synonymous. Merely shipper discharging the goods at the port of import does not ipso facto give the importer a right to take the delivery thereof. Garden Silk Mills Ltd. Vs.UOI (1999) Valuation of imported goods Rule 3 transaction value  adjusted in accordance with rule 10,  if discrepancies arises regarding transaction value the rules 4 to 9 4 Transaction value of Identical goods  5 similar goods 7 deductive value 8 computed value 9 residual method in all above method adjustment for cost and services are to be made in accordance with rule 10(2) Valuation of export goods Rule 3 transaction value if discrepancies arises regarding transaction value the rules 4 to 6 4 comparative value 5 computed value 6 residual value 14(2) Tariff value - CBEC edible oils, brass,scrap Relevant date foe determination of value of goods date of contract/ price is determined ( foreign exchange also this date) subject to sole consideration and actual date, time and place to ensure all cost incurred upto High sea basis purchase on high sea basis means that the imported goods are acquired by a buyer from the original importer while they in the high seas i. e the purchase take place before they reach india. Rule 2(g) Transaction value as reffered in section 14(2) Rule 3 (1) value of imported goods is transactions value adjusted in accordance with the provisions of Rule 10 3(2) above will be acceptable subject to condition 1 there is no restriction to use  2 the price is not subject to in respect of being valued 3 subsequent resale  4 where buyers and sellers are related then rule 3(3) note- if the transaction value is rejected, then it will be deteremined in accordance with the provision of Rule 4 to Rule 9 post importation activities activities undertaken by the buyer other than sec 10 will not be considered as indirect payment and no separate duty will be charged on the same subject to these charges will be shown separately. Rule 2(2) Related person 14(1) Value of the goods shall be the transaction value Rule 10(1) a) incurred by the buyer but not included - i) cb except buying commission ( fees paid by an importer to his agent for service of representing him abroad in purchase of goods being valued. Commission paid to canalising agent in India is not 'buying commission' - Hyderabad Industries Ltd. v UOI [2000] 115 ELT 593 (SC),  ii) cost of container and packing local agent commission- agency commission incurred in India, cannot be termed as buying commission and hence will be added to determine the CIF Value. ( Refer 9. 14) b) appropriately apportioned value of goods supplied by the buyer free of charge or at reduced costs for use in connection with the production and sale for export of imported goods. i) mcp incorporated , ii) tdm used in production, iii) m consumed and iv). edad and ps  c) royalty, license fees, patents, trademark and copyright related to imported goods is required to pay as condition of sales is includible even if process done after importation. Matsushita Television & Audio (I) Ltd. Vs CC (2007) japaan Reproduction royalty not covered - in case reproduction can be done on local stuff using imported technology. payment for distribution/ re selling rights - shall not be added if such payments are not a condition of the sale for export to the country of importation of the imported goods. CC vs Ferodo India Pvt. Ltd. [2008] - company purchased raw material as well as secret formula to manufacture brake liners & brake pads ( which was based on net sale value of product ) does not arise any point to include it in value of goods imported WEP Peripherals Ltd. V CC [2008] - price can be lowered on account of bulk order, further royalty payment in regards shuttle which can be procured from local sources then  royalty is not includible. d) any part of subsequent resale that accrues to the seller. e) other payment as condition to sale Rule 10 (2) a Actual cost and in case of importation of goods by air it should not exceed 20% of FOB If it is unascertainable - 20% of FOB Cost of frieght incurred in the movement from port of entry to the inland container depot or container frieght station shall not be included in the cost of transport. demurrage charges and lighterage or barge charges on charted vessels. Includible b Actual cost of insurance and in case of unascertainable- 1.125% of the FOB Value c Loading, unloading and handling charges associated with the delivery of the imported goods at the place of importation in port- they are always deemed equal to - 1% of [ FOB value of the goods + cost of transport referred to in (a) above + cost of insurance referred to in (b) above ] in short 1 % of the CIF value of the goods note - this is a fixed charges irrespective of any amount of expenditure incurred. in case where  where fob value and costs of insurance & transport, not ascertainable -  i cost of transport = CIF value * 20 / 120 ii cost of insurance = CIF value * 1.125 / 101.125 As per section 91 read with section 94 of finance act , 2004 for education cess and section 136 read with section 139  of the finance act, 2007; they wont be applicable on the additional duty of customs referred to in section 3(5) of the CTA, 1975. Inland container depots ( ICDs) [ Circular No. 18/2009- Cus., dated 8-6-2009 ] refer Duty on DTA sales by 100% EOU Sarla Polyester Ltd. Vs CCEx. [2008] - first of all, excise duty equal to customs duties will be computed; and such amount of excise duty will be liable to further  addition of education cess and SHEC. 1 Assessable value under custom law will be considered 2 50% exemption from basic custom duty and 100% exemption from section 3(5) duty will be provided CENVAT credit available to the buyer of this goods- as per the rule of 3(7)(a) the aggregate of additional custom duty inclusive of es and shes u/s 3(1)/(5)   Rule 4 / 5 Transaction value of identical goods/ similar goods contemporaneous imports if it is not possible to ascertain the transaciton value as per rule 3 of customs import valuation rules, 2007 value of such identical or similar goods provisionally assessed u/s 18 will not be taken. (3) lowest value to be taken : if more than one transaction value of identical goods in found. 6 Determination of value where value can not be determined under rules 3, 4 and 5. - Provided that at the request of the importer, and with the approval of the proper officer, the order of application of rules 7 and 8 shall be reversed 7 Deductive value. —  -1 Subject to the provisions of rule 3, if the goods being valued or identical or similar imported goods are sold in India, in the condition as imported at or about the time at which the declaration for determination of value is presented, the value of imported goods shall be based on the unit price at which the imported goods or identical or similar imported goods are sold in the greatest aggregate quantity to persons who are not related to the sellers in India, subject to the following deductions : —  (i) either the commission usually paid or agreed to be paid or the additions usually made for profits and general expenses in connection with sales in India of imported goods of the same class or kind;  (ii) the usual costs of transport and insurance and associated costs  (iii) the customs duties and other taxes payable in India by reason of importation or sale of the goods.  -2 If neither the imported goods nor identical nor similar imported goods are sold at or about the same time of importation of the goods being valued, the value of imported goods shall, subject otherwise to the provisions of sub-rule (1), be based on the unit price at which the imported goods or identical or similar imported goods are sold in India, at the earliest date after importation but before the expiry of ninety days after such importation.  -3 (a) If neither the imported goods nor identical nor similar imported goods are sold in India in the condition as imported, then, the value shall be based on the unit price at which the imported goods, after further processing, are sold in the greatest aggregate quantity to persons who are not related to the seller in India.  12. It is recognized that the method of valuation provided for in rule 7(3) would normally not be applicable when, as a result of the further processing, the imported goods lose their identity. However there can be instances where, although the identity of the imported goods is lost, the value added by the processing can be determined accurately without unreasonable difficulty. On the other hand, there can also be instances where the imported goods maintain their identity but form such a minor element in the goods sold in the country of importation that the use of this valuation method would be unjustified. In view of the above, each situation of this type must be considered on a case-by-case basis.  (b) In such determination, due allowance shall be made for the value added by processing and the deductions provided for in items (i) to (iii) of sub-rule (1).  Interpretation as per bangud 1 Though the transaction value of the imported goods or identical or similar goods  is not ascertainable, but the goods are sold in india after importation. 2 the sale in india should be in same condition as they are imported. 3 the sale are made at or about the time at which declaration for determination of value is presented, or at the earliest date after importation but within a max 90 days after import of the goods to be valued. Method of valuation and computation 5 Any sale in India, as described in paragraph 1 above to a person who supplies directly or indirectly free of charge or at reduced cost for use in connection with the production and sale for export of the imported goods any of the elements specified in rule10(l)(b), should not be taken into account in establishing the unit price for the purposes of rule 7.  Rule 8 Computed value- I will refer it later Radhey Shyam Ratalal v CC [2009] 238 ELT 14 (SC) Rule 12- Rejection of declared value by customs officer ( 2000 USD 300 MT 5500 USD) read with section 14 CC vs Atam manohar ship breakers Ltd. [2009] 233 ELT 145 (SC) the vessel for ship breaking at of usd 9.7 addendum was inserted in the moa 8.7 Varsha Plastic Pvt. Ltd. Vs UOI [2009] 235 ELT 193 (SC) when the nature of goods has been misdeclared or  invoice manipulation, under-invoicing, etc. CC vs Mahalaxmi Gems [2008] 231 ELT 198 (SC) Department required to show any contemporaneous evidence that invoice were either fabricated/fake or any relation between importer and exporter Valuation of Export Rules Custom Export Valuation Rules, 2007 Rule 8 transaction value may be rejceted Rule 4 to 6 if not acceptable Chapter 10  Importation and Exportation Flow pattern of import 1 file IGM- import general manifest before arrival 2 files the arrival report 3 assign and igm number to the manifest 4 discharge the cargo in the custody of the port trust authorities 5 importer deliever negotiable bill of landing from shipper to master or the steamer agent of the vessel receive delivery order. 6 presents a bill of entry 7 bill of entry processed by appraising dept 8 physically examined 9 Thereafter a) home consumption; b) to be warehoused, the warehousing bond in a sum equal to double the duty determined is executed by the importer. Accepted by and ''deposit into warehouse'' order is given. 10 on showing the customs cleaances to the port trust authorities hc or diw 11 diw, another bill of entry called the ex bond bill of entry files to discharge. This again assessed to duty in terms of section 15(1)(b) of 1962 29(1)/(2) General and special obligation of person in charge 2(24) import manifest vessel and aircraft (before the arrival ), import report vehicle (within 24 hours) under section 30 50000 Regulation framed refer 10.3 31 Entry inwards of the vessel- nothing shall apply in case of unloading of passenger or a member of crew, mailbags, animals, perishable goods and hazardous goods. If bill of entry presented before arrival all the same actual arrival date.  Bharat surfactants (Pvt) Ltd. Vs. UOI [1989] 43 ELT 189 (SC) - date recorded in the customs register will be considered not actual date of entry Flow pattern of Export 1 exporter files an application shipping bill 2 shipping bill is assessed by the appraising dept, duty cess collected 3 shipping bill along with export cargo presented to the preventive officers 4 after checking export trade control licence and payment will endorse it with 'let ship' order 5 after presented to it to master or agent of vessel the export cargo will be loaded. 6 boat note procedure quay 7 master issues a receipt 8 the customs officer endorse on the shipping bill the qty 9 in case short shipment notice within 7 days of departure 39 entry outward  other than baggage and mail bags- it is given in respect of vessel and same is not applicable in respect of aircraft and vehicle 41 export general manifest - before departure 42 Prohibits the departure without written permission ammunition 44 45 to 51 is not applicable to baggage and postal articles 45 Duties of custodian 46 Bill of entry ( Forms) Regulation, 76 three types in five copy in case of the advance bill of entry any time after delivery but before 30 days of expected arrival for case law refer - 10.9 149 discretionary power to amend bill of entry 48 goods not cleared, warehoused and transhipped after 30 days of unloading can be sold 49 warehousing without warehousing Clearance of export goods 50 Entry of goods for exportation 2(5) Bill of export means referred in section 50 quadruplicate copy- customs, vessel exporting, exporter, foreign exchange repatriation 51 clearnace of the goods for exportation Transit -without unloading , tranship- unloading and loading 54 transhipment to any place outside india on presentation of bill of tanshipment as per treaty of companies Chapter 11 Warehousing 9 Warehouse station as declared by cg Central Board of Excise and Customs delegate its power to chief and in respect of 100% EOUs commissioners 58 private bonded warehouse- assistant/ deputy cancellation one month notice licence two category sensitive and non sensitive goods 59 Warehousing bond, goods assessed u/s 17 or 18, undertake to interest on duty 61(2), rent and other charges 63 together with interest 24%. 61(1) Period for which goods remain in warehouse, afr permitting the deposit of good u/s 60, capital goods 100% EOU five years, other cg 100% EOU three years and other one year. Extention commissioner EOU 100% thinks fit, other six months but by chief commissioner deem fit. licence cancelled - removal 7 days 61(2) Interest when goods remain in the warehouse beyond the specified period EOU 100% 15%, other beyoud 90 days 15% Pratibha Processors vs UOI [1996] 88 ELT 12 (SC)- no interest nil duty note - 47(2) delay in payment of duty beyond 5 working days from the date on which bill of entry for home consumption is returned to him. So it applys only when goods are entered for home consumption by filling a bill of entry for home consumption. Once the goods deposited in warehouse, the ex bond bill of entry for home consumption is filled u/s 68 which does not provide for any levy of interest. The only interest provided in 61(2). CC v. Acalmar oils & Fats Ltd. [2009] 240 ELT 440 (tri.- bang.) and CBEC circular no. 15/2009- Cus., dated 12-5-2009 65 manufacture inside the warehouse- finished product wholly exported - the if waste is destroyed no duty otherwise it will be leviable as applicable to waste form. If finished product cleared for hc leviable waster form but if rate exceed in this form then cg may exempt exceed amt u/s 66. rate of duty- these goods fall under the  third category u/s 15(1)(c). hence rate and valuaton in force ''on the date of payment of duty''. 70 remission of duty in case of shortage of the volatile goods, which ae on account of natural loss and goods notified by cg. Empowered assistant/ deputy commissioner 67 transfer of warehoused goods from one to another, in case same town- supervision of an officer, different town a bond equal import duty have to be warehoused 3 months otherwise forfeited. 68 Clearance of goods for home consumption 69 ……………………..for exportation 71 warehoused goods should be removed only for these mentioned purposes 73 when goods cleared and duty paid then bond u/s 59 will be discharged or cancelled. 72(1) Instances of improper removal- 1 contravention of section71, 61, 64 samples taken away without payment of duty, 59 not duly accounted. Proper officer may demand duty. 72(2) Penal provision, failure to pay any amount detain and sell last resort, Case laws- Deemed removal (end of the permissible period or extention thereof) on expiry of warehouse period u/s 61. Kesoram rayon vs. CC[1996] 86 ELT 464 (SC).- treated as improper removal payable at rate applicable on the date of deemed removal. Section 15(1)(b) applies in case of u/s 68 and it cannot be applied in case of section 72. Public notice no. 60/2009, dated 31-8-2009 conclusion-  once permitted period gets expired then the date of deemed removal will remain forzen. even extention allowed relevant date remain same. the sale  is to made procedure 142. notes- section 14- assessable value is to be computed as per the exchange rate into-bond bill of entry for warehousing is filled u/s 46. Chapter 12       Duty Drawback 74 Re export of imported goods ( drawback of customs duties) rules, 1995. Refund paid on importation, identity established. Available on all goods. Exported without use 98% drawback, other case period, dep and relevant factor u/s 74(2)[cg- 3-85%,9-75%,12-70%., more than 18 months - NIL; no drawback in certain goods- wearing apparel, tea chests, exposed cinematograph film passed by the board of film cencors in india and unexposed photographic films, paper and plates and X-ray films].  It should be exported within two years from the date of payment of duty( in case provisional assessment u/s 18, date of payment of provisional duty). must have been entered for export (deemed date with reference to which the rate of duty is calculated u/s 16) as per section 51, if exported as baggage declaration owner u/s 77 efe u/s 82. personal use and subsequently re exported- 4%, 3, 2.5, 2 for maximum four year (quaterly fraction for applying rate) for more than 2  year sufficient cause to board. Example- two quarter of first year 8%, two and half quarter of first year - 12% of import duty. 75 Custom Central Excise Duties and Service tax Drawback Rules, 1995. should not be negative value addition and minimum value addition should be fullfiled, rebate to notified goods. Goods exported by post Rule 3  of Re-export of imported Goods ( Drawback of customs duties ) Rules, 1995 following procedure - 1. outer packing carry- DRAWBACK EXPORT   2. deliver to the competen postal authority a claim in quadruplicate  3. relevant date for drawback claim receipt of this claim by proper officer from postal authority. date for cal of int on drawback u/s 75A  4. deficiency memo 15 days  5. 30 days complies exporter then acknowledgement date shall be deemed date o filing the claim for purpose of section 75A. A similar procedure for sec 75 under rule 11 of the customs, central excise duties and service tax drawback rules, 1995. Export other than by post Rule 4 required details on shipping bill and proper supporting Rule 5 manner and time of claiming - claim within three months from the date on which an order permitting clearance and loading of goods for exportation u/s 51. Assistant/ Deputy commissioner can extend further 3 months Custom Central Excise Duties and Service tax Drawback Rules, 1995 2(c ) export means Sun Industries v. CC[1988] 35 ELT 241 (SC) and UOI v. Rajindra Dyeing & Printing Mills Ltd. [2005] 180 ELT 433 (SC). When export goods destroyed or used before crossing territorial water of india is not liable  or other which is destroyed on high seas is eligible for drawback. Rule 3  all industries rate 1st june of every year Rule 4 Brand rate - in respect of which the all industries rate has not been announced. The exporter or manufacturer has to get the brand rate fixed by furnishing  the prescribed data within 60 days from the relevant date for determination of rate of duty and tariff valuation u/s 16 or 83 to commissioner, condone for further 30 days. Rule 5 Special brand rate- In case the manufacturer or exporter finds that the duty drawback as per all industry rate is less than 80% of the duties and taxes paid on materials he can apply for it to commissioner. rule 7 Rule 3 of Duty Drawback Rules, 1995 - to the extent CENVAT credit availed duty drawback will not be allowed Illustrative cases where all industry drawback rates will not apply. F.No.609/137/2007-DBK 16/2009 Grant of All Industry rate of duty drawback to merchant exporters 25-05-2009 Refer 12.9   Cases where drawback claim is not admissible- refer question 13 76 50 Rs. And market price  of the goods is less than the amount of drawback determined thereon. And word required to confirm Rule 3 Except tea chest  used as packing material for export of blonded tea, have  been takeng into account after manufacture; duties not paid in respect of used goods or services Rule 8 Drawback admissible drawback exceeds Rs. 500 or it is 1% or more of the FOB value of export. Rule 8A rule 3 - all industry rate shall not exceed 1/3rd  of the market price of export product. 75 the value of export goods is less than the value of imported goods used therein or plue specified percentage.  21-11-2008 no drawback in respect of cement and rice Rule 15 Supplementary chain- if exporter finds that drawback is less than entitled. Time limit within 3 months from -  rule 3 - date of determination, rule 6 - date of communication of the said rate, section 75a - date of affixing the dated  receipt stamp on such claims which are complete in all respect. other cases- payment or settlement. Assistant/Deputy extend 9 months.  in case claims incomplete deficient memo by commissioner with 15 days and deemed not to filed again filing will be treated as claim filed for the purpose of section 75A. deemed import - 15 1a Rule 16 A evidence of sale proceed realisation within the period allowed FEMA, 1999 ( includeing extention provided by RBI) fails- then - 30 days cause notice by assistant/deputy, fails within 30 days repay of the receipt of order in accordance with provisions of section 142. if subsequently recovered within one year sales realised from the date of such recovery of the amount of drawback. Note - the time allowed under FEMA, 1999 shall not be applicable to the goods exported from the Domestice Tariff Area to a SEZ. 75A interest on drawback- fault by dept- one month date of filing of drawback claim- 6%, fault by claimant- two months from the date of demand recoverable- 13% Chatper 13 Baggage, Postal articles & stores 2(3) Baggage - includes unaccompanied baggage not motor vehicle. unaccompanied baggage - bound to arrive earlier or later  77 Declaration by owner to the proper officer as per the baggage declaration form issued by the CBEC u/s 81 of bonafide baggage and this date is relevant for rate of duty and tariff valuation u/s 78 but in case of advance information of uab it deemed to have been made only when the contents of the uab arrive as per V.H. Doshi vs. CC[1986] 25 ELT 202 (Tribunal). 80 Temporary detention of baggage which is dutiable or the import of which is prohibited. Rule 3 of the baggage rules, 1998 other than n bmc returning to india and articles other than those mentioned in Annexure 1 (in respect of prescribed limit) are exempt upto - age upto 10 years coming after more than 3 days Rs. 6000; 3000, above 10 years Rs. 25000; 12000. in case of returning by land route rule  4. passenger's free allowance pooling is not allowed. 18 years 1 laptop exempt Annexure 1- fire arms, cartridges of fa exceeding 50, cigarettes exceeding 200 or cigars 50 or tobacco 250 gms, alcoholic liquor or wines 2 litres, gold or silver other than ornaments Rule 4 in case of n bmc by land route or in case of other countries by land route prescribed in annexure iv more than 3 days Rs. 6000 and Rs. 1500. dictaphones Rule 5 Free allowance to professional - in addition - 3,6 months household Rs. 12000 and professinal equipment Rs.20000 and Rs. 40000 respectively. 2 years (after min 365 days or after termination of work if hasn't availed it during preceding three years-  in use 6 months and not mentioned in annexure i,ii,iii rs. 75000. Rule 6 Free allowance to jewellary - in addition one year man Rs. 10000 and woman Rs. 20000 Rule 7 Free allowance to tourist - tourist - not more than6 months in course of any 12 months, except nepalese and bhutanese) of indian origin not specified annexur iv - allowance of rule 3 or 4. foreign origin othan than pak of Rs. 8000 for making gifts, pakistani origin other than by land routes Rs. 6000. all tourist coming by land routes as specified in Annex. IV- Rs. 6000. Rule 8 concession a person transferring his residence - rule 3 and 4 including the articles listed in annexure iii, jewellary 10, 20.conditions - 2 years assistant/ deputy commissioner and maximum 6 months in india commissioner, 3 years not availed. Rule 9 free allowances apply in respect of unaccompanied baggage will available even it is despatched within one months assistant/deputy or it lands before tow months ad one year. Rule 10 member of crew - rs. 600, free allowance applicable at the time of final pay off on their engagement only. Postal articles 82 entry 83 imported by post - the date postal authorities present a list and if such goods are imported by vessel the date of arrival; whichever is later.  84 Regulations Stores and Coastal goods Section 85  Stores may be allowed to be warehoused without assessment to duty Section 86  Transit and transhipment of stores Section 87  Imported stores may be consumed on board a foreign-going vessel or aircraft Section 88  Application of section 69 and Chapter X to stores Section 89  Stores to be free of export duty Section 90  Concessions in respect of imported stores for the Navy Goods must be directly supplied to the nevy not through the ship builder or else - Leader Engineering Works vs. CCEx [2007] 212 ELT 168 (SC).
Chapter XII       Provisions relating to coastal goods and vessels carrying coastal goods Section 92  Entry of coastal goods Section 93  Coastal goods not to be loaded until bill relating thereto is passed, etc. bill of coastel goods Section 94  Clearance of coastal goods at destination Section 95  Master of a coasting vessel to carry an advice book Section 96  Loading and unloading of coastal goods at customs port or coastal port only Section 97  No coasting vessel to leave without written order no penalties u/s 116 Section 98  Application of certain provisions of this Act to coastal goods, etc. Section 98A  Power to relax Section 99  Power to make rules in respect of coastal goods and coasting vessels
Chapter XIII     Searches, seizure and arrest 100 Power to search suspected persons entering or leaving India, etc. any good, proper officer, in india Section 101  Power to search suspected persons in certain other cases specified goods, empowered by comm Section 102 Persons to be searched may require to be taken before gazetted officer of customs or magistrate Section 103  Power to screen or X-ray bodies of suspected persons for detecting secreted goods Section 104  Power to arrest ( section 132,133,135,135A, or section 136 ) offences under this act is not cognizable. commisioner, officer in charege of a police Section 105  Power to search premises reason to believe Section 106  Power to stop and search conveyances rummage Section 106A  Power to inspect Section 107  Power to examine persons any officer empowered by commissioner. Section 108  Power to summon persons to give evidence and produce documents any Gazetted officer, exemption u/s 132 of ccp, 1908 shall be available. Section 109  Power to require production of order permitting clearance of goods imported by land route no. 7©, any officer Section 110  Seizure of goods, documents and things proper officer if don’t serve notice of such seizure within 6 months of such seizure, then goods will be returned to the cocern person. This period can be extended by commissioner not exceeding six month. Time limit - J.K.Barodalia Mill v CC[1994]72 ELT 813 (SC) time limit of section is to computed from the date of seizure not from the date of detention. Section 110 A provisional release of seized goods. inadvertently
Chapter  XIV     Confiscation of goods and conveyances and imposition of penalties Section 111  Confiscation of improperly imported goods, etc. Section 112  Penalty for improper importation of goods, etc. Section 113  Confiscation of goods attempted to be improperly exported, etc. Section 114  Penalty for attempt to export goods improperly, etc. Section 114A Penalty for short-levy or non-levy of duty in certain cases Section 115  Confiscation of conveyances Section 116  Penalty for not accounting for goods Section 117  Penalties for contravention, etc., not expressly mentioned Section 118  Confiscation of packages and their contents Section 119  Confiscation of goods used for concealing smuggled goods Section 120 Confiscation of smuggled goods notwithstanding any change in form, etc. Section 121  Confiscation of sale-proceeds of smuggled goods Section 122  Adjudication of confiscations and penalties (A gazetted officer - 10000, ad -2 lakhs, and com and jc - without limit. Adjudication procedure 122A- adjournment shall be granted for maximum three times to a party during its proceeding. Limits of adjudication of demand u/s 28 as fixed by circular no. 23/2009- cus., dated 1-9-2009---1.  com all cases without any limit 2. Additional/ Joint Commissioner  - SCN invoking extended period of limitation - duty upto 50 lakhs, other cases value of goods upto rs. 50 lakhs and cases involving baggare - without limit. 3. AD - All SCNs - value of goods upto Rs. 2 lakhs  Section 123  Burden of proof in certain cases ( seizure of notified goods - having possession or claiming ownership of that ) Section 124 Issue of show cause notice before confiscation of goods, etc. deputy commissioner Section 125  Option to pay fine in lieu of confiscation. The amount of redemption fine cannot exceed the market price of the confiscated goods less the 'import' duty chargeable thereon.  Poonam Health Service v. CC [2009] 242 ELT 335 (Bom.) - It is in nature of recompense to the state, when offence appears to be committed then as per section 23 or section 68 abondon option will not be available to him. Purfina Chemicals Pvt. Ltd. V CEGAT [2004] 167 ELT 145 (Mad.) - in case of abandonment of goods redemption fine is refundable. Section 126  On confiscation, property to vest in Central Government( and the adjudging officer shall take and  hold possession of the confiscated goods. This fine will not interfere with the other penal provision. Section 127  Award of confiscation or penalty by customs officers not to interfere with other punishments quashed 125 Fine in lieu of confiscation of goods. Action in rem (i.e. action for the recovery of the things/goods itself) 112-114 penalty. Action in personam ( action against a particular person. )
Chapter XVI     Offences and Prosecutions Section 132  False declaration, false documents, etc. Section 133  Obstruction of officer of customs Section 134  Refusal to be X-rayed Section 135 Evasion of duty or prohibitions Section 135A  Preparation Section 135B  Power of court to publish name, place of business, etc., of persons convicted under the Act Section 136  Offences by officers of customs Section 137  Cognizance of offences Section 138  Offences to be tried summarily Section 138A  Presumption of culpable mental state Section 138B  Relevancy of statements under certain circumstances Section 138C  Admissibility of micro films, facsimile copies of documents and computer printouts as documents and as evidence computer printouts as documents and as evidence Section 139  Presumption as to documents in certain cases Section 140  Offences by companies Section 140A  Application of section 562 of the Code of Criminal Procedure, 1898, and of the Probation of Offenders Act, 1958 143 Release of goods on exection of the bond 143A Duty Deferment - an obligation of export, if not compiled with 6 months extention then pay the duty plus 12 % simple interest rate from the date of said permission for clearance is given to the date of payment.
Chapter XVII     Miscellaneous Section 141  Conveyances and goods in a customs area subject to control of officers of customs. Handling of cargo in customs areas regulations, 2009. Regulation 6 specifies various responsibilities  of various persons. They have to dispose off the imported and exported lying unclaimed, uncleared or abandoned int he specified mannere and within a tiem limit of 90 days. it does not apply to customs bonded warehouse or warehoused goods. Section 142  Recovery of sums due to Government Section 143 Power to allow import or export on execution of bonds in certain cases Section 143A  Duty deferment Section 144  Power to take samples Section 145  Owner, etc., to perform operations incidental to compliance with customs law Section 146  Custom House agents to be licensed ( The Board  has framed Customs House Agents Licensing Regulations, 2004 ) Section 146A  Appearance by authorized representative Section 147  Liability of principal and agent. Where duty is not levied or is short levied or erroneously refunded on account of any other reason then wilful act, negligence of his agent such duty shall not be recovered from the agent unless the in the opinion of ad the same cannot be recovered from the owner. inability of owner to pay duty cannot be imposed on the agent. Section 148 Liability of agent appointed by the person in charge of a conveyance Section 149  Amendment of documents ( subject to the provision of section 30 and 41, but after clearing documentary evidence required to be deposited. Section 150  Procedure for sale of goods and application of sale proceeds Section 151  Certain officers required to assist officers of customs Section 151A  Instructions to officers of customs Section 152  Delegation of powers Section 153  Service of order, decision, etc. Section 154  Correction of clerical errors, etc. in any decision or order passed. CC v. Nicolas Piramal India Ltd. [2008] 225 ELT 99 (Tri.-Mum.)-  application of incorrect rate of exchange rate refund arise wont attract limitation of period under section 27. Section 154A  Rounding off of duty, etc. Section 155  Protection of action taken under the Act Section 156  General power to make rules Section 157  General power to make regulations Section 158  Provisions with respect to rules and regulations Section 159  Rules, certain notifications and orders to be laid before Parliament Section 160  Repeal and savings Section 161  Removal of difficulties Important amendment B. CUSTOMS 1. Notification No. 124/2009 Cus. (NT) dated 20.08.2009 has notified (i) a public sector company (ii) a resident who proposes to import goods claiming for assessment under heading 9801 (items eligible for project import) of the First Schedule to the Customs Tariff Act, 1975 as class of persons for the purpose of the sub-clause (iii) of section 28E(c) of the Customs Act,1962. “Public sector company” shall have the same meaning as is assigned to it in clause (36A) of section 2 of the Income-tax Act, 1961. “Resident” shall have the same meaning as is assigned to it in clause (42) of section 2 of the Income-tax Act, 1961. Indirect tax compiler Excise Act,1944 Entry 84 of the Union List of the VII Schedule to the Constitution of India empowers the CG except on ALCOHOLIC LIQUORS FOR HUMAN CONSUMPTION, OPIUM, INDIAN HEMP AND OTHER NARCOTIC DRUGS AND NARCOTICS WHERE THE STATE GOVERNMENT has the power  to levy. However in the case of medicinal and toilet preparations contaning above mentioned things will not be considered. Basic Excise Duty - it is leviable under first schedule to the Central Excise Tariff Act, 1985. it was 16% and with effect from 24 Feb 09 it has been reduced to 8% by way of exemption notifications. Excise Act Additional Duty of Excise ( Textile and Textile Articles ) - aim curb the demand and consumption thereof or to generate revenue therefrom which can bear the extra load of taxation. National Calamity Contingent Duty - It is levied u/s 136 of the Finance Act, 2001. At persent it is being levied on cigarettes, biris, pan masala and miscellaneous tobacco products; motor cars,multi-utility veicles & two wheelers; domestic crude oil; and mobile phones. Finance Act Additional duty of Excise - 85 of the section of Finance Act, 2005 on Pan Masala and Tobacco products. Education Cess - 91 read with section 93 act, 2004. It is calculated @ 2% on aggregate of all the duties of excise (excluding education cess and secondary education cess on excisable goods), which are levied and collected by the Central Govt under any law. SHEC - 136 read with section 138, 2007 3 Levy of excise duty ACCEx v National tobacco Co. India Ltd. [1978] 2 ELT 416 (SC) - The term levy included both imposition as well as assessment but does not include collection. designated area in continental shelf and Exclusive economice zone of India 3(1A) Goods produced by or on behalf of Central or State Government are liable to excise duty. Other than salt UOI v. Bombay Tyre International Ltd. [1983] 14 ELT 1896 (SC) - Levy of excise duty is on the production of the goods, the stage of collection need not in poing of the time synchronize with the completion of the manufacture process. Levy of excise duty of pm but determination of rate of duty as per following rules -  Taxability base - Goods should be excisable at taxability event. Taxability event - pm of excisable goods ( happening of which attracts the liablity of tax. ) Tax rate base -  Rule 4 Duty is payable at the time of removal of goods from factory or warehouse.
Every person who produces or manufactures any excisable goods, or who stores such goods in a warehouse, shall pay the duty leviable on such goods. No excisable goods, on which any duty is payable, shall be removed without payment of duty from any place, where they are pm or from a warehouse, unless otherwise provided. Central Excise Rules, 2002 Rule 5 relevant date for determination of duty and and tariff valuation shall be the date of actual removal of goods from the factory or warehouse. Concept of deemed removal - the date of issue of goods for consumption in case of captive consumption will be considered deemed date of removal. Union Carbide India Ltd v UOI [1986] 24 ELT 169 (SC) - Articles  captively consumed can be charged to duty only when they have reached the stage where they can be identified as 'goods' i.e they are marketable are are excisable commodities. Articles in Crude and elementary form are not dutiable as thet are merely intermediate product.  Intermediate product exempt, if final product dutiable  White Machines v CCEx [2008] 224 ELT 347 (SC) - Even final product is exempt the intermediate product is excisable if the same is marketable in the condition in which the Department seeks to levy duty thereon. C.I. chilled rolls final product, C.I. castings intermediate product.  CCEx v Gurdaspur Distillery [2008] 224 ELT 337 (SC) - does not because of its specification in Tariff Schedules unless it is marketable. Hence methane gas cc as fuel is not dept failed to prove. Cipla Ltd. Vs CCEx  [2008] ELT 403 (SC) - Mere transfer to another cpative unit of the assessee doesn't establish marketablility of the product. Assess benzyl methyl salicylate BMS banglore to patalganga Exempted at the time of manufacture - exemption withdrawn, yes as the goods were excisable at the time of manufacture - wallace flour mills co.ltd. V CCEx. [1989] 44 ELT 598 (SC). Goods were not liable to special levy/additional levy - subsequent made leviable - no, as there was no levy of special duty on goods at the time of manufacture. - CCEx v Vazir Sultan Tobacco Co. Ltd. [1996] 83 ELT 3 (SC) quashed 2(d) Excisable goods means goods specified in the first schedule and second schedule to the Central Exicse Tariff Act, 1985 as being subject to a duty of excise and includes salt. Explanation to Section 2 (d) - Deemed Marketability - Goods includes any article, material or substance which is capable of being bought and sold for a consideration and such goods shall be deemed to be marketable. 366(12) of the Constitution defines goods to include all materials, commodities and articles. 2(7) of Sale of Goods Act, 1930 defines Goods to mean every kind of movalbe property other than actionable claims and money and include stocks and shares, growing crops, grass and things attached to and forming part of the land,which are agreed to be severed before sale or under the contract of sale. UOI v Delhi Cloth & General Mills Co. Ltd. [1977] 1 ELT 199 (SC) - known to the marked as such and can ordinarily come to the market for being brought and sold. Thus in case of immovable properties no excise duty can be levied.
Manufacture means bringing into existence a new substance. american judgement -  Fabricated Dy. CCEx v Tungabhadra Steel Products Ltd. [2004] 163 ELT A161 (SC) - That Electric overhead travelling cranes fabricated by assessesfor their own use at work spot, carrying on the business of fabrication and erection of hydraulic gates, hoists, etc., required for construction of dams and multi purpose river valley projects are not excisable, since they are immovable property. hoists Mallur Siddeswara spinning mills (P) Ltd. V CCEx [2004] 166 ELT 154 (SC) - that generating sets bolted on a frame, which are capable of being unbolted and shifted from that place, are not immovable property. Bihor Industries v CCEx [1989] 40 ELT 280 (SC) - First article must be listed if it is not listed then marketability is not required. So it is second concern. CCEx v TISCO [2004] 165 ELT 386 (SC) - Marketability means selling of a commodity known to commerce and which may be worthwhile to trade in. There was amendment of section 2(d) by Finance Act, 2008 inserted capable of being bought and sold for a consideration hence requirement of commercially known to the market has been removed usage in captive consumption is not determinative of whether the article is capable. Goods must be marketable in the condition in which Department wants to levy duty of excise. AP State Electricity Board v CCEx [1994] 70 ELT 3 (SC) - Marketability does not depend upon the number of sales and it does not confined to territorial limits of this country. Single buyer ECE Industries Ltd. V CCEx [2004] 164 ELT 236 (SC) - Parts used for repair or replacement during warranty period are excisable. 2(f) Manufacture - includes any process i) ia to the completion of mp ii) the section or chapter notes of the First Schedule. Deemed manufacture iii) third schedule packing including declaration or alteration of rsp or adoption of any other treatment marketable ( deemed manufacture). manufacturer hired labour and any person who engages in their pm on his own account. Empire Industries Ltd. V UOI [1985] 20 ELT 179 (SC) - not necessary absolutely make out a new thing. Different commercial commodity having its distinct characte, use name and commercially known as such. CIT v Tara Agencies [2007] 214 ELT 491 (SC) - Example of production, manufacture and processing - tea business blending of different qualities of tea to smoothen its marketablility is its processing. Fedders Lloyd Corporation Ltd v CCEx [2008] 221 ELT 3 (SC) - Two branches delhi - condensing unit, mumbai - procured cooling units locally, quality control tests, affixing brand name, pipe kits, electrical cord, remote control etc. CCEx v Raj purohit GMP India Ltd. [2008] 231 ELT 577 (SC) - mere classification of the resultant product under a different heading from the original product doesn't. the process of slitting and cutting of steel sheets and polyster film lamination Question no. 17 CCEx v BOC (I) Ltd [2008] ELT 323 (SC) - send its own empty cylinders to procure hilium gas. Note 9 to chapter 28 of the tariff -  propel CCEx v Textile Corpn. Marathwada Ltd. [2008] 231 ELT 195 (SC) - Where more than one processes are carried out on goods, each process independently amounting to manufacture, the duty may be paid after completion of the last of such processes i.e. at the final stage. Chapter notes to chapters 52, 54 & 55, provides that in relation to textile articles, the process of dyeing, printing, bleaching, mercerising, twisting, texturising, doubling, multiple-folding, cabling or any other process. i) pay excise duty at each and every stage of manufacturing, it would be entitled to CENVAT credit and the whole exercise would be revenue neutral, Hence the assessee has rightly paid the duty at the final stage. Manufacture vis a vis processing UOI v Parle products Ltd. [1994] 74 ELT 492 (SC) - at the end of it commercially new and different article emerges. It is be decided on evidence based on trade parlance and not on court's own perception and appreciation of the matter. UOI v J.G. Glass Industries Ltd. [1998] 97 ELT 5 (SC) - will serve no purpose but for the said purpose. Hence printing of glass bottles does not amount to manufacture. CCEx v Kapri International (P) Ltd. [2002] 142 ELT 10 (SC) - multiple levy under the same tariff entry is permissible. exigible CCEx v S R Tissues [2005] 186 ELT 385  (SC) - change in tariff heading is not to be looked upon while deciding whether manufacture involved or not.   Waste and Scrap In chapter 72 of iron and steel, heading 7204 refers to ferrous waste and scrap. Similarly in Chapter 40 relating to rubber and articles thereof, tariff entry 4004 00 00 incorporates waste of rubber and thus the waste of such product are exigible to duty. Waste , parings and scrap arising in the course of manufacture of exempted goods is exempt from duty, if only exempted goods are manufactured in that factory. only manufactured goods produced. Khandelwal Metal & engineering Works v UOI  [1985] 20 ELT 222 (SC) - by-product not contrary to section 3(1). Waste of containers - containers in which input are received cannot be treated as waste on their clearance. CCEx v West Coast Industrial Gases Ltd. [2003] 155 ELT 11 (SC) Scrap arising during manufacture of parts for repairs of plant - Excisable. UOI v. Grasim Industries Ltd. [2008] 229 ELT 328 (Raj.) no duty if manufacture takes place in course of construction of immovable property. Furniture dutiable, fixtures not. Cannibalizing i.e. without reducing them into broken piece of wood, laminates etc. Craft interiors pvt ltd. V CCEx [2006] 203 ELT 529 (SC). A manufacturer is one who actually undertakes the manufacturing activity. An independent contractor or manufacturer cannot be termed as a hired labourer. Our specification, affixation of brandname or supply of raw material does not decide that we are the manufacturer. A person supplying rm on indep job work basis,  according to his desing or specification or with his name or trade name. CCEx v MM Khambatwala [1996] 84 ELT 161 (SC). However in case the supplier is having full control in that case supplier will be the manufacturer. Britannia Biscuit Co. Ltd. V CCEx [1997] 89 ELT 22 (SC) - assessee reserved the right to reject will supply metal, other four unit are manufacturer. 2(e) Factory wilting 2(a) Adjudicating authority does not include CBEC constituted under central boards of revenue act, 1963 (54 of 1963), Commissioner of Central Excise (Appeals) or Appellate Tribunal 2(aa) appellate tribunal means the customs, excise and service tax appellate tribunal constituted u/s 129 of the customs act. fermenting Chapter 2  Classification CETA, 1985 3 emergency power of cg to increase the duty of excise. Nil - 50%, in other case - twice. In case of second increase approval of parliament. 5 empowers to cg to amend the f and s schedule of the tarif by a noti. The power to alter rates and duty governed by sec 3 the central excise tariff contains 98 chapters grouped in 21 sections. 77 97 98 kept blank. 1 6 10 12 no rates of duty of excise have been specified. Generally accepted principle in classification of goods - HSN, Functional or end use, trade or commercial parlance v scientific and technical meaning - scinetific only when the statutory context requires, expert opinion and evidence, isi speci and glossary of term, dictionary meaning, trade advices and trade notices - 37B,1944. Burden to prove classification by manu but if dept claim then dept. H.P.L. Chemicals Ltd. v CCEx [2006] 197 ELT 324 (SC). Two opinion - Poulose and Mathen v CCEx [1997] 90 ELT  264 (SC). Residual entry last resort - Mauri Yeast India Pvt. Ltd. v State of UP [2008] 225 ELT 321 (SC). Rules for interpretation aid interpretative rules of HSN set of six rules Rule 1 Classification to be as per terms of heading and section/chapter notes - 31 02 04 specified goods only